By Charlotte Eyre, European Plastics News, a Crain publication
Global chemical giant BASF is delaying the construction of an MDI (methylene diphenyl diisocyanate) plant in Chongqing, China, and has not yet received the final go-ahead from Chinese authorities.
Spokesperson Gareth Rees said the Chongqing authorities are still reviewing how the new plant will impact the market in the region. As the global MDI market is expected to decline in 2009, BASF has had to redraw plans for the project, he explained.
The company's Environmental Impact Assessment (EIA) application is also under review by the National Development and Reform Commission (NDRC), he told European Plastics News.
However, Rees remains confident that the construction of the plant will go ahead, although he cannot specify when it will begin. "We are proceeding with the approval process … and are continuing the preparatory work with all the shareholders," he said.
Once built, the 400 kilotonnes-per-annum plant will provide MDI for companies in China. MDI is used to make polyurethanes for construction, refrigeration, furniture and transport. BASF has an MDI plant near Shanghai, as well as plants in Belgium, the US and Korea.
BASF's total annual capacity for MDI currently stands at 1280 ktpa.
PIC: BASF has a major petrochemicals site under development in Chongqing.